The Irish Cabinet has reportedly agreed that planned carbon tax increases due after next month's Budget are now "politically impossible", with ministers confirming there will be no government-initiated rises to home heating fuel, petrol or diesel while oil prices remain volatile amid the escalating conflict with Iran. This marks a rare point of agreement between Fianna Fáil and Fine Gael ministers, driven by fears of further fuel protests and political damage to the Coalition, though it is likely to anger environmental groups given recent UN warnings on climate targets.

Carbon tax on home heating oil had been due to rise from €63.50 to €71 per tonne on 14 October, but Cabinet sources say this will not now proceed, with the wider schedule of increases planned up to 2030 also under review. The government has already suspended reinstating motor fuel excise duty until at least next year, though officials acknowledge this is costly to the Exchequer and not a sustainable long-term approach, with pressure growing from rural TDs and ministers, including Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers, to find a lasting solution to fuel costs.